India moves on current account gap at expense of growth | beyondbrics

India moves on current account gap at expense of growth | beyondbrics:

"

After long discussion, a battle in India’s government between the imperatives of boosting the economy and supporting the currency has been decided.

Late on Monday, the Reserve Bank of India (RBI) announced a package of measures to tighten liquidity. It hopes to stem the depreciation of the rupee and prevent its current account deficit from spiralling out of control – but it has done so at the risk of limiting India’s already meager economic growth.

And it hasn’t done it half-heartedly, surprising observers with a set of four announcements:"

'via Blog this'